Bill S1061-2011

Establishes New York state renewable electric generation pilot programs

Establishes New York state renewable electric generation pilot programs to authorize the development of up to three hundred megawatts renewable electric capacity statewide, in order to stimulate the growth of clean, affordable and reliable sources of energy and to foster new partnerships between electric corporations, energy producers and energy customers in this state.

Details

Actions

  • Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Memo

BILL NUMBER:S1061

TITLE OF BILL: An act to amend the public service law, in relation to New York state renewable electric generation pilot programs

PURPOSE OR GENERAL IDEA OF BILL: The purpose of the bill is to require the Public Service Commission (PSC) to establish a New York State (NYS) Renewable Electric Generation Pilot Program in order to stimulate the growth of renewable electric capacity statewide and foster new partnerships between electric corporations, energy producers and energy customers in NYS.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill requires the PSC to establish the NYS renewable electric generation pilot program to authorize the development of up to 300 megawatts (MW) of renewable electric capacity statewide, in order to stimulate the growth of clean affordable and reliable energy sources and foster partnerships between the utilities, power producers and energy customers.

This section requires the PSC to implement a pilot program that directs electric corporations to build renewable energy facilities which are financed under terms of a commission order. The order will authorize electric corporations to recover capital and operating costs in their rate base and will allow them to earn a reasonable return over a period of time. In order to qualify for these projects a utility must provide the Commission with specific information regarding the pilot project including: a detailed description and economic evaluation of the proposed investment; a discussion of cost benefits, risks, an rate implications to customers; evidence of reasonable efforts to involve local businesses; evidence of compliance with applicable emission limitations; and, copies of customers contracts.

This section also authorizes the renewable generation facilities eligible to be constructed and financed under this pilot program to include electric generation through the use of the following technologies: solar, wind, photovoltaics, tidal, geothermal and fuel cells. These facilities must be manufactured installed and operated according to applicable standards; must connect to the electric system and operate in parallel with an electric corporation's transmission and distribution facilities; must operate in compliance with PSC standards and requirements; and, must be located within the state.

This section also authorizes electric corporations to own an equity interest in these facilities and allows partnerships between independent power producers, developers, and/or customer-owned or leased generators.

Section 2 of the bill requires the PSC to provide an annual report on the progress of the pilot project on or before June first to the

Governor, temporary president of the Senate, Speaker of the Assembly, minority leader of the Senate and minority leader of the Assembly.

JUSTIFICATION: As part of the deregulation of the power industry in NYS, utilities were required or agreed to divest themselves of most of their generation facilities. Deregulation was intended to create a more robust retail power market that would encourage competition and lower energy prices.

Since deregulation, world economic events and concern over global warming have caused governments worldwide to implement public policies that hasten the growth of renewable energy generation. In an effort to establish energy independence from imported fossil fuels and to create green jobs, NYS has established a Renewable Portfolio Standard (RPS) which is a policy that seeks to increase the proportion of renewable electricity used by retail customers. To accomplish this, the PSC has instituted a charge on all private utility customers' monthly electric bills. Yet, public monies will only go so far to reach this goal. Private industry capital is needed to truly encourage viable renewable power sources in the State.

PRIOR LEGISLATIVE HISTORY: 2009-10: S.6722/A.3738A - Referred to Energy & Telecommunications

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately provided that 180 days after the enactment date, the PSC shall have a competitive process in place that shall be open to all electric corporations.


Text

STATE OF NEW YORK ________________________________________________________________________ 1061 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sens. PARKER, PERKINS -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Tele- communications AN ACT to amend the public service law, in relation to New York state renewable electric generation pilot programs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The public service law is amended by adding a new section 73 to read as follows: S 73. NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT PROGRAMS. 1. THE COMMISSION SHALL ESTABLISH NEW YORK STATE RENEWABLE ELECTRIC GENER- ATION PILOT PROGRAMS TO AUTHORIZE THE DEVELOPMENT OF UP TO THREE HUNDRED MEGAWATTS OF RENEWABLE ELECTRIC CAPACITY STATEWIDE, IN ORDER TO STIMU- LATE THE GROWTH OF CLEAN, AFFORDABLE, AND RELIABLE SOURCES OF ENERGY AND TO FOSTER NEW PARTNERSHIPS BETWEEN ELECTRIC CORPORATIONS, ENERGY PRODUC- ERS AND ENERGY CUSTOMERS IN NEW YORK STATE. 2. (A) THE COMMISSION SHALL OVERSEE THE IMPLEMENTATION OF THE PILOT PROGRAMS AND SHALL DIRECT ELECTRIC CORPORATIONS TO BUILD OR CAUSE TO BE BUILT RENEWABLE ENERGY FACILITIES TO BE FINANCED UNDER TERMS ESTABLISHED THROUGH AN ORDER OF THE COMMISSION WHICH SHALL AUTHORIZE CAPITAL AND OPERATING COSTS TO BE RECOVERED IN THE CORPORATIONS RATE BASE AND TO EARN A REASONABLE RETURN OVER A PERIOD TO BE DETERMINED BY THE COMMIS- SION, PROVIDED THAT THE CORPORATION SHALL, AT MINIMUM, PROVIDE THE COMMISSION WITH THE FOLLOWING: (I) A DETAILED DESCRIPTION AND ECONOMIC EVALUATION OF THE PROPOSED INVESTMENT; (II) A DISCUSSION OF THE COSTS, BENEFITS, AND RISKS OF THE PROPOSAL, INCLUDING AN ANALYSIS OF THE COSTS, BENEFITS, AND RATE IMPLICATIONS TO THE PARTICIPATING CUSTOMERS, TO THE COMPANY'S DEFAULT SERVICE CUSTOMERS, AND TO THE UTILITY'S DISTRIBUTION CUSTOMERS;
(III) A DESCRIPTION OF ANY EQUIPMENT OR INSTALLATION SPECIFICATIONS, SOLICITATIONS, AND PROCUREMENTS IT HAS IMPLEMENTED OR INTENDS TO IMPLE- MENT; (IV) A SHOWING THAT IT HAS MADE REASONABLE EFFORTS TO INVOLVE LOCAL BUSINESSES IN ITS PROGRAM; (V) EVIDENCE OF COMPLIANCE WITH ALL APPLICABLE EMISSION LIMITATIONS; AND (VI) A COPY OF ANY CUSTOMER CONTRACTS OR AGREEMENTS TO BE EXECUTED AS PART OF THE PROGRAM. (B) RENEWABLE GENERATION FACILITIES ELIGIBLE TO BE CONSTRUCTED AND FINANCED UNDER THE NEW YORK STATE RENEWABLE ELECTRIC GENERATION PILOT PROGRAMS SHALL: (I) GENERATE ELECTRICITY THROUGH USE OF THE FOLLOWING TECHNOLOGIES: SOLAR; WIND; PHOTOVOLTAICS; TIDAL; GEOTHERMAL; AND FUEL CELLS; OR (II) GENERATE ELECTRICITY THROUGH LOW-IMPACT, RUN-OF-RIVER HYDROELEC- TRIC ELECTRIC GENERATING EQUIPMENT WITH CAPACITY UP TO THIRTY MEGAWATTS WITH NO NEW STORAGE IMPOUNDMENT; (III) BE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS; (IV) CONNECT TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES; (V) OPERATE IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTAB- LISHED BY THE COMMISSION; AND (VI) BE LOCATED WITHIN THE STATE, INCLUDING FACILITIES THAT CONSIST OF CUSTOMER-OWNED OR LEASED GENERATORS. (C) AUTHORIZE ELECTRIC CORPORATIONS TO OWN AN EQUITY INTEREST IN SUCH FACILITIES AND ALLOW PARTNERSHIPS WITH INDEPENDENT POWER PRODUCERS, DEVELOPERS, AND/OR CUSTOMER-OWNED OR LEASED GENERATORS. S 2. The public service commission shall provide an annual report on or before the first day of June to the governor, the temporary president of the senate, the speaker of the assembly, the minority leader of the senate, and the minority leader of the assembly reporting the progress of their efforts and the effects of the program on the environment and public. Such report shall identify each facility participating in the pilot project and shall include, but not be limited to, information on each energy source or sources used for generation at such facility; the sum capacity, in megawatts, of all electrical generating equipment used by the facility; the date the facility will begin or has begun generat- ing electricity; and the number and category of customer-owned or leased generators. S 3. This act shall take effect immediately; provided, however, that not later than the one hundred eightieth day after this act shall have become a law, the public service commission shall have in place a competitive process which shall be open to electric corporations.

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